ISLAMABAD: The Hub Power Company Limited (Hubco) has urged the Power Division to expedite the issuance of an official gazette notification in accordance with the amended agreement for Narowal Energy Limited (NEL), as the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) has reportedly stopped accepting NEL’s invoices.
In a letter addressed to the Power Division—also copied to the National Electricity Task Force, Army Air Defence Command Westridge-III, Rawalpindi, and CPPA-G’s Chief Executive Officer, Rihan Akhtar—Hubco’s Chief Financial Officer, Muhammad Saqib, referenced the company’s earlier correspondence dated April 4, 2024.
Hubco highlighted that following the Cabinet Division’s decision on January 14, 2025, and under Section 2.2(b)(xiii) of the Amendment Agreement signed on February 28, 2025, between the Government of Pakistan (GoP), CPPA-G, and NEL, the government had committed to facilitating the pending gazette notification through the Ministry of Energy.
The letter noted that the delay in issuing the notification has led CPPA-G to decline invoices related to the reimbursement of withholding tax on dividends, totaling Rs 122 million, resulting in substantial financial losses for NEL.
Hubco’s CFO emphasized the need for urgent action, urging the Power Division and other relevant authorities to ensure prompt publication of the gazette notification to resolve the matter.
Earlier, Hubco had informed the Power Division that the National Electric Power Regulatory Authority (Nepra) had decided on the reimbursement of withholding tax on dividends through its determination dated January 28, 2020. However, since Nepra’s ruling predated the amendment to Section 31(7) of the Nepra Act, the decision now requires formal notification by the federal government to become effective.
Under the amended agreement, the Government of Pakistan had reaffirmed its obligation to support NEL in securing the required gazette notification.
